ACCT 1800/1500 Inventory Name:________________________

Problem 1 - (14 points) Horizon Furnishings, Inc. completed these inventory transactions during the month of March:

DATE ITEM QUANTITY UNIT COST March 1 Balance 10 $90 March 4 Purchase 38 $87 March 12 Sale 42 March 22 Purchase 60 $103 March 31 Sale 62

A) Compute the cost of goods sold and the ending inventory if LIFO is used, showing your work below. YOU MUST PLACE YOUR ANSWERS IN THE BOLD OUTLINED BOXES ON THE TOTALS LINE. DATE PURCHASES COST OF SALES INVENTORY ON HAND

3/1 3/4 3/12 SALE 3/22 3/31 SALE TOTALS

B) Compute the cost of goods sold and the ending inventory if AVERAGE COST is used, showing your work below. YOU MUST PLACE YOUR ANSWERS IN THE BOLD OUTLINED BOXES ON THE TOTALS LINE. DATE PURCHASES COST OF SALES INVENTORY ON HAND

3/1 3/4 3/12 3/22 3/31 TOTALS

Calculations for averages:

Problem 2 - (6 points) Assume Horizon Furnishings in problem 1 is using the LIFO inventory method and all sales are priced at $240 per unit. All purchases are on account. Journalize the transaction for March 12th and for March 22nd.

DATE ACCOUNTS DR CR March 12 March 22 ACCT 1800/1500 Inventory Name:________________________

Problem 1 - (14 points) Horizon Furnishings, Inc. completed these inventory transactions during the month of March:

DATE ITEM QUANTITY UNIT COST March 1 Balance 10 $90 March 4 Purchase 38 $87 March 12 Sale 42 March 22 Purchase 60 $103 March 31 Sale 62

A) Compute the cost of goods sold and the ending inventory if LIFO is used, showing your work below. YOU MUST PLACE YOUR ANSWERS IN THE BOLD OUTLINED BOXES ON THE TOTALS LINE. DATE PURCHASES COST OF SALES INVENTORY ON HAND

3/1 3/4 3/12 SALE 3/22 3/31 SALE TOTALS

B) Compute the cost of goods sold and the ending inventory if AVERAGE COST is used, showing your work below. YOU MUST PLACE YOUR ANSWERS IN THE BOLD OUTLINED BOXES ON THE TOTALS LINE. DATE PURCHASES COST OF SALES INVENTORY ON HAND

3/1 3/4 3/12 3/22 3/31 TOTALS

Calculations for averages:

Problem 2 - (6 points) Assume Horizon Furnishings in problem 1 is using the LIFO inventory method and all sales are priced at $240 per unit. All purchases are on account. Journalize the transaction for March 12th and for March 22nd.

DATE ACCOUNTS DR CR March 12